Life Contingencies &

Demography
Tutorial 7 Question 7
By Ng Ruoyu (U1811861G)
 7)  A 65-year old male and a 62-year old female take out a joint life whole life assurance policy with sum insured $10,000 and premium
payment term of 5 years. The death benefit is payable immediately on the first death. Premiums are payable monthly in advance.

 
• 
(a) Show that the net
monthly premium  
𝑎¨
(𝑚)
= 𝑎¨ 𝑥 −
𝑚− 1
2𝑚
is $100.

𝑛∨
  𝑎¨ =𝑎¨ − 𝑎¨
𝑥 𝑥 𝑥 : ´𝑛∨¿¿
   

 𝐴 =1 −𝑑 𝑎¨ 𝑥
𝑥
b)  Calculate the net premium reserve after three years.